All the people who believe the government is the way out of our current economic difficulties would be well served to remember how we got here to where we are. Consider the MASSIVE government spending in past decades that took us from being the greatest creditor nation on earth to the greatest debtor nation on earth. I have a web link for the national debt clock and today it reads like this:
U.S. NATIONAL DEBT CLOCK
The Outstanding Public Debt as of 09 Oct 2008 at 06:04:58 PM GMT is:
The estimated population of the United States is 304,877,413
so each citizen’s share of this debt is $33,555.16.
The National Debt has continued to increase an average of
$3.24 billion per day since September 28, 2007!
What is a Trillion Dollars? If you laid one dollar bills end to end, you could make a chain that stretches from earth to the moon and back again 200 times before you ran out of dollar bills! One trillion dollars would stretch nearly from the earth to the sun. It would take a military jet flying at the speed of sound, reeling out a roll of dollar bills behind it, 14 years before it reeled out one trillion dollar bills. Having Debt on this kind of crazy scale is suicidal at best and a recipe for a world war at worst when the world wakes up and tells us what to do with our dollars. It’s no great stretch of the mind, given the facts, that our government has been fiscally irresponsible and has created false expectations of various government entitlements that won’t survive the next few years.
Government can print its own money and it still can’t stay solvent! After all the taxes we pay; the government is $10 Trillion Bucks in Debt and Social Security and Medicare are no longer solvent and will become impossible to fund soon. IF THIS IS REPRESENTATIVE OF THE GOVERNMENTS MANAGEMENT ABILITY WHY WOULD ANYONE BELIEVE THEY CAN SOLVE THE MESS WE’RE IN BY BUYING A STAKE IN OUR NATIONS BANKS??????
Our Congress, who is empowered by the constitution to print money and coinage, essentially outsourced this function to a consortium of foreign bankers when it passed the Federal Reserve Act. The Fed, as this agency is known today, is neither federal nor a reserve but a private profit making corporation run by and owned by member banks that are, in turn, owned by the wealthiest people on earth. Before the creation of the Federal Reserve System there was no such thing as inflation. Our currency is backed by the full faith and credit of the United States rather than by an asset such as gold. Our dollar is a debt instrument, rather than a unit of wealth, that is controlled by the global money elite and it loans the government its own currency AT INTEREST!
Two relevant gifts of the Federal Reserve System to us, and future generations, are the keeping of interest rates so low for so long as to encourage abuse :and when the abuse became the present crisis, the inflation of the money supply so as to make our savings much less valuable like the the equity in our houses. The Current Chairman of the Federal Reserve System, Benjamin S. Bernanke (B.S. Bernanke for short) is an expert on the Great Depression of the 30’s and he admitted that the Fed mismanaged the Depression and made it much worse than it had to be. The Fed is flooding the world with US Dollars and continues to keep interest rates very low and yet the banks are so paranoid they won’t lend to anyone, even each other, as they hoard every dollar they have. The easy money policies of the Federal Reserve have helped to create the current crisis and the massive borrowing and monetizing of debt needed to flood the world with dollars will make matters worse down the line and prolong the crisis.
The Federal Reserve System has been arranging massive bailouts and guaranteeing loans for giant corporations to take over other giant corporations like Bear Sterns at fire sale prices! I must have missed the document or act of congress that gives them the power to do that.
The United State Congress has blocked any meaningful domestic production of Energy like Oil Production in this nation, as well as building refineries, for at least 30 years! They were shocked at the greed of the oil companies when oil prices spiked and our economy was driven into the ground. They were outraged with big oil rather than the people, themselves, who made us utterly dependant on foreign oil to the point where it could destroy our nation if the countries we depend on, who hate us, stop supplying us with oil. We got just the barest taste of what it might be like in a major oil disruption and how we could go from 2008 to 1889 in the space of two weeks. THE CONGRESS REFUSES TO ADDRESS THIS ISSUE UNTILL AFTER THE ELECTION, AND IF THE DEMOCRATS WIN, NOT AT ALL. As the damage to our economy mounted the congress was moved by compassion to borrow tens of billions from china to give us each a check for $600 bucks to take some of the sting out of oil prices and to show how much they care. (Is low intelligence a prerequisite for government service?)
The United States Congress and the Democrat Party created Freddy Mac and Fannie Mae to create a market for otherwise insane loans made to people who can’t afford them because they wanted everyone, even the poor, to have a home. With encouragement from Freddie and Fannie the banks would loan to people with no income or employment verification, six figure sums for a mortgage and assured that not to do so would be discriminatory. It didn’t matter because they could always sell the loans to Freddie and Fannie who were quasi governmental organizations who would buy up insane mortgages in the name of foolish social engineering. THE UNITED STATE CONGRESS DELIBERATLY CREATED A HUGE MARKET FOR SUB PRIME LOANS AND WHEN THE SYSTEM BROKE THEY TOOK OVER HALF THE MORTGAGES OF THE NATION WITH OUR TAX DOLLARS!
Since the Government bought half the mortgages it was easy to rationalize buying the biggest insurance company out there. AIG insurance was bought by the treasury because it was too big to fail and would have effects beyond our country that would be deleterious to the United State were we to let it fail like we did with Lehman Brothers.
Now the Treasury Secretary asked for about a Trillion Dollars (830 Billion last I heard) to have God like powers to put out financial fires where ever he wished. This authority was rushed through congress with little meaningful oversight and Secretary Paulson’s biggest challenge now is to develop the bureaucracy and guidelines to spend it. This will fix the economy; they assured us. I’m still not sure how much we’re borrowing or how much we’re monetizing but I do know that China will no longer loan us a dime. China wants a world currency and world financial organizations so no one has to be dependent on the United States.
When the Passage of the Bailout Failed, the Federal Reserve and the treasury colluded with other major central banks in the world to do another suicidal interest rate cut in the hopes of getting the credit market moving again. We sure need it to work because states like California and Massachusetts and Cities like New York could go bankrupt soon because banks don’t want to loan to them! Imagine that!
So we’ve socialized mortgage lending and banking and elements of insurance overnight fundamentally changing us from a free market democracy to a socialist-corporate hybrid. The lines are blurring between government and housing and government and banking and now it’s taking a turn into global institutions that regulate world currency and money policy. The unprecedented joint action by the world’s central banks is likely to be institutionalized and made a permanent part of our world in the days to come. That would take even more power from the government and certainly the citizens of this country. I guess I missed the part in the constitution where it says congress and the Treasury Secretary and the Fed can do all this.
I say all that to say this:
GOVERNMENT CREATED THIS MESS WITH ITS DEBT, DEPENDANCE ON FORIGN OIL, SOCIAL ENGENEERING, AND GREED AND THE IDEA THAT MORE GOVERNMENT WILL CURE THIS MESS IS SO STUPID THAT THERE ARE NO WORDS FOR IT!!!!
Now today there is a mass exodus from mutual funds as the government’s latest moves have failed to restore confidence. They’ve bet our nations security and economy on the idea that government is better at management than Wall Street. When you think about it that way, the lack of confidence begins to seem like the return of common sense among the people at last!